Vaswani Industries IPO (Initial Public Offering) : SEBI Order in the matter of Vaswani Industries

Vaswani Industries Limited IPO listing was withold by SEBI earlier and now SEBI has isued another order in this matter. This latest press release number is PR No.107/2011 and issued by Dr. K M Abraham, Whole Time Member, SEBI.

The IPO was open between 29th Apr 2011 to 3rd May 2011. The price band was Rs 45 to Rs 49 and the Issue Price was fixed at the upper level of price band, Rs 49 per equity share. The company had entered into primary market with an Initial Public Offer (IPO) of Rs. 49.00 Crore. Vaswani Industries Limited is engaged in integrated business of manufacturing Sponge Iron, Steel Billets & Ingots and power generation. VIL is a part of Vaswani Group of Industries.

The new SEBI order says…..
1. Vaswani Industries Limited shall give withdrawal option to all the investors who have been allotted shares in the non-institutional investors’ category and the retail individual investors’ category.
2. Investors who apply in the withdrawal option shall enclose a Delivery Instruction Slip for the purposes of transferring such number of shares as may be decided in the revised share allocation.
3. In the event of refund/withdrawal on the exercise of the withdrawal option by an investor, the Company may deduct the expenses incurred in connection with its IPO, to be certified by the merchant banker and the same shall be appropriately apportioned from the subscription amounts due to the investors.
4. Rikhav Securities Limited is prohibited to act as a syndicate member/sub-syndicate member for all forthcoming issues till further directions.
5 Bajaj Consultants Private Limited and its group entities, namely, Bajaj Commodities Trading Private Limited, Bajaj Share and Stock Brokers Private Limited, Vinodkumar Bajaj & Company HUF, Bajaj Consultants Private Limited, Bajaj Retail India Ventures Private Limited, Bajco Consultants Private Limited, Mr. Rajkamal Ramniwas Bajaj, Ramniwas Bajaj & Company and Mr. Vinodkumar Ramniwas Bajaj are directed to cease and desist from bidding in an objectionable manner till further directions.
6. The ongoing investigation shall inter alia examine in detail the role of the intermediaries involved in the Initial Public Offer of Vaswani Industries Limited.